Liz Truss urges world leaders to follow UK with trickle down economics
Liz Truss is to urge world leaders to join Britain in introducing far-reaching tax cuts despite US president Joe Biden pouring scorn on ‘trickle down economics’ ahead of their first bilateral talks in New York.
In a speech to the United Nations, the prime minister will argue the free world must prioritise economic growth to deny authoritarian states like Russia the chance to manipulate the global economy.
However, her embrace of Reaganite economic policy puts her on a collision course with the Democratic president who tweeted yesterday that he was “sick and tired” of the approach, which he claimed had never worked.
In her latest break from Treasury orthodoxy, Truss vowed yesterday to review all tax rates to help struggling households and businesses through the cost of living crisis. The prime minister’s remarks pave the way for a radical overhaul of the system that could include looking again at income tax brackets.
In an interview at the top of the Empire State Building on Tuesday, she told the BBC: “We do have to take difficult decisions to get our economy right. We have to look at our tax rates. So corporation tax needs to be competitive with other countries so that we can attract that investment.”
She had already signalled that further tax cuts, beyond the changes expected in her emergency mini-Budget on Friday, could be on the cards. She told reporters on the plane to the US: “Lower taxes lead to economic growth, there is no doubt in my mind about that.”
Truss’s first talks with Biden are set against a backdrop of tensions over post-Brexit trading arrangements in Northern Ireland. Despite the UK’s attempts to separate out the issues, the Biden administration has warned that a free trade deal is unlikely until the row over
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